Uganda Clays Profits Up 21% On Prudent Cost Management Measures

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Uganda Clays Limited has posted sh5.9 billion in net profits for the year ended 2021, marking its second consecutive year of recovery in profitability.

Net profits grew 21% from sh4.8 billion in 2020 to sh5.9 billion in 2021 as the employed prudent costs management control systems according to the company’s financial results released on April 19.

The increase in profits was boosted by prudent management of operational costs of sales and overhead expenses.

“Gross profits for the period increased by 27% to sh17.2 billion from sh13.5 billion in 2020, driven by efficiencies and continued cost management measures put in place resulting in controlled production costs,” management said.

The company’s revenues grew to sh36.7 billion in 2021 from sh29.7 billion. During the lockdown, the company said it faced challenges in sales and distribution as well as internal production processes due to the restrictions on the movement of persons.

This had a bearing on their projected revenue for the period. While the construction industry was one of the sectors left to operate, activities were affected by these movement restrictions.

“Despite the backdrop, the company has continued to show resilience and has posted strong results for the period as is evident from the numbers. The balance sheet analysis shows that total assets increased by 8% to sh74.5 billion which is mainly attributable to deliberate investment in our factories, cay reserves, and trucks to move our products and raw materials,” management explained.

Amidst the strong headwinds, the company has continued to focus on maintaining business continuity, increasing product inventory by improving production efficiencies while ensuring the health and safety of staff and customers,” it adds.

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The company has opened up distribution points in the countryside in Arua, Fort Portal, Gulu, Hoima, Kabale, Lira, Mbarara, as well as in Bukasa, Lugogo and Ntinda, to cater for the market in and around Kampala.

Management said the use of new distribution models such as agencies enhanced the supply chain by having easier access to the market and reducing costs.

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